Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1887-04-14
LABOR AND CAPITAL
Causes of the Era of Great Profits Through
Which We Have Been Passing.

Causes of the Era of Great Profits Through
which we Have Been Passing.
1t is u point not usually noticed that
the growth of great fortunes results,
not from the permanent use of ma
chimes, but from the introduction of
them. 1t is when n new and better
process is beginning to supplant on old
one that it enables him who uses it to
acquire wealth with abnormal rapidity.
If prices are gauged by the cost of pro-
ducing things by hand the man who
secures the first machine for making
them possesses an Aladdin's lamp. Yet
his profits are only temporarily thus
high. When competitors follow in his
footsteps his exceptional gains disap-
pear. If he has made hay while the
sun shone, he may continue to live lux
uriously, though the percentage of
his dividends be reduced; though
his stock now yields six
per cent, instead of twenty
five or fifty, there may be so much of it
us to make him content for The rest OF
his life. The day of accumulations as
rapid us those that have dazzlcd men
during the century now closed appears
TO be past. This principle of large
profits during the period when ma
chimes are in process of coming into
use. is the basis of the fact to which
Rodbertus was one of the first to call
attention, that the gulf which separates
social classes has, in England, increased
since the year 1900. Production by
machinery has, in fact, made the work.
man more comfortable than he was un"
der the old regime; but it has, as Rod
bertus claims, given him smaller pro-
portion of the total product of indus
try.
1t is obvious that statistics taken dur
ing the period when machines are
every where in process of displacing
hand labor will fail to be applicable to
the period after the general displace-
ment has, once for all, taken place
Abnormal profits are inevitable during
the Introductory period; and abnormal
profits mean. rs matter OF course,
relatively smaller wages. If n for
tunate invention enables A, the en-
ployer, to quadruplc his profits. even
though he may somewhat raise the
wages of B, his workman, B will get,
for the time being, lessened percent
age of the total product. He will
thrive, but not, for the time being, as
greatly us his employer. Now the whole
past century has been just such "time
being" it has been transitional pc
. riod, an interval when new system wa!
in progress of making its way into gen
/ eral use, and when the relations of elias
J ses were disturbed and unnatural. TIL,
= statistics of this time give no accurate
/. indication of what may be expected
5 hereafter Workmen now get large
absolute reward than formerly, sine
G the total product from which thei
+ wages are taken has been large. The.
! have received, it would appear, o di
j, minished fractional part of that sun
total. The probabilities of the futur
A seem to be that industry will be les
. rcmunerative, but that the terms of tn
I division between employers and EN-
ployed will be more favorable to tn
- workman. The sums to be divide
" may not be so large as during tn
q transitional era, but such rs they are
the laborcrs may get large share
J. them. This change, as it would seen
q is already begun the equality {
d classes in respect of income appears
l. be greater than it was few years ag'